This week we once again have the wisdom and insight of Kay Bates, local real estate expert, as our guest column...enjoy!
Cheers, JR
~~~~~~~~~~~~~~~~~~~~~~~~~~
Good news on the Horizon!
I’m sure you are all hearing all the rumblings about the Federal Reserve and some banks failing to meet Regulatory Requirements and having to be taken over. We are in uncharted and unprecedented waters. The hawkish demeanor of the Federal Reserve continues seemingly unabated. Other than 2004-2006 when the Federal Reserve raised interest rates 17 consecutive times, this is uncharted territory! Even most economists can’t agree on whether it’s the right thing or if we are already in or being inextricably driven into a recession.
For me, the bigger question as a business owner and entrepreneur is “How is this affecting your
Business and personal finance because that’s the real economy!”
Whether or not you agree with the Fed’s economic policies or not, we face real issues daily in conducting our lives and businesses.
As a small business owner, myself, I’m not immune to the impact. My business bank was “First Republic Bank,” and when I login to my online portal now I’m greeted with “Welcome to JP Morgan Chase.”! Did you bank with a bank that has ostensibly failed? How are you pivoting? What’s really in store for us?
Even though this is all a bit unsettling and a bit dismal, we have been here before and I’m confident we will get through this.
In my line of work, real estate, the national real estate news sounds dismal! The headlines tout national news and tell us that everything is trending or headed down. But do you know what? That isn’t true here in our local or greater San Diego market. The reverse is actually true! We are currently experiencing what could best be described as a relatively HOT market. Our inventory of homes for sale is very low, and the number of “days on market” in some price ranges are extremely short before they’re sold. Multiple offers and selling prices over the asking price are still happening here locally in spite of the national news and the Fed.
So, what about you and your Business? How are you being affected? Are the negative headlines or are the Fed’s mad dash to control inflation fueled by a decade of wrongly unheard-of interest rates affecting you? What measures are you currently putting in place to deal with the inevitable slow-down, nay, recession? What can we do collectively, as we have in the past, to help one another and our businesses survive and even thrive in the coming months and years?
We ARE the economy! Let’s fix this ourselves, to the extent we can, by supporting one another with help and solutions that we know we have.
